Issue link: https://read.uberflip.com/i/1490964
For existing institutional investor client use only. Not for public distribution. The information contained herein is confidential and proprietary to SEI and is not to be reproduced or made available in any form to any persons without the express prior written consent of SEI. 7 ©2022 SEI Commodities = Bloomberg Commodity Index (USD), Inflation-Linked = Bloomberg 1-5 Year US TIPS Index (USD), Emerging Markets Debt = 50/50 JPM EMBI Global Div & JPM GBI EM Global Div, High Yield Bonds = ICE BofA US High Yield Constrained Index (USD), US Long-Duration Bonds = Bloomberg Long US Government/Credit Index (USD), US Investment-Grade Bonds = Bloomberg US Aggregate Bond Index (USD), Emerging Markets Equity = MSCI EFM (Emerging+Frontier Markets) Index (Net) (USD), World Equity x US = MSCI World ex-USA Index (Net) (USD), U.S. Small Cap = Russell 2000 Index (USD), U.S. Large Cap = Russell 1000 Index (USD). Sources: SEI, index providers. Past performance is no guarantee of future results. As of 09/30/20XX. Market performance overview • Markets struggled once again with negative returns across the board. The quarter started with an initial burst of optimism, driven by a modest, short- lived easing of US inflation pressures and comments from Federal Reserve (Fed) chair Jay Powell that investors (mis)interpreted as hinting at an easier outlook for monetary policy. A reacceleration of inflation, along with a number of hawkish statements and actions from multiple central banks, caused interest rates to rise and brought a more pessimistic tone back into markets. • In contrast to the previous quarter, US equities fell least, while emerging markets equities underperformed developed markets overall. • With interest rates rising significantly for a third straight quarter, bond markets struggled meaningfully, especially longer-duration, higher-quality areas (including inflation-linked bonds despite still-high inflation). Emerging markets debt had another difficult quarter while high yield managed to hold up relatively well. • Outside of natural gas, energy-related commodities fell. Industrial metals were also down, reflecting concerns about the global economic outlook, while some agricultural commodities were up on weather, war and harvest concerns. -4.11% -3.12% -4.63% -0.67% -9.03% -4.75% -11.51% -9.20% -2.19% -4.61% 11.80% -4.09% -22.45% -14.06% -27.41% -14.60% -28.08% -23.91% -23.50% -17.22% -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% Commodities Inflation-Linked Emerging Markets Debt High Yield Bonds US Long-Duration Bonds US Investment-Grade Bonds Emerging Markets Equity World Equity x US U.S. Small Cap U.S. Large Cap Financial Markets Review One Year 2022 Q3